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Leung was born in Hong Kong. Leung's early childhood was punctuated with parents' quarrels and arguments about money. A mischievous boy in his early years, Leung's personality changed when his father, a chronic gambler, left the family when he was eight; he and his younger sister were brought up by their mother.[1][2]

Leung was a reticent, quiet child. He has said that his childhood experiences paved the way for his acting career, which allows him to openly express his feelings: "You don't know what happened, just one day your pop disappears. And from that day on I try not to communicate with anyone. I'm so afraid to talk to my classmates, afraid that if someone says something about family I won't know what to do. So I became very isolated. So that's why I love acting, because I can express all my feelings the way I couldn't for so long." .[3] "I'm a quiet person. And then when I went to TV it all came out; I cried and I wasn't ashamed. The audience thinks it's the character's feelings, but really it's my feelings, all coming out in a rush."[1]

Leung went to private school, but he quit at the age of 15 due to financial difficulties. He was a well-behaved teenager who was very close to his mother. During an interview on the making of Hero, he says that he sees his mother as his definition of a "hero[ine]" for having brought up two children alone.

After quitting his studies, Leung worked in a variety of jobs, first as a grocer's runner at his uncle's shop, then a showroom salesman in a Hong Kong shopping centre. He met actor and comedian Stephen Chow who influenced his decision to become an actor and remains a good friend.

In 1982, he passed the training courses of television channel TVB. Due to his boyish looks, TVB cast him as host of a children's programme, 430 Space Shuttle. Leung enjoyed comedies during his television years; it was for these he became well known. So, in the 1980s, he was named as one of "TVB's Five Tigers" (their five up-and-coming male TV stars) along with Andy Lau, Felix Wong, Michael Miu and Kent Tong. Leung starred in the highly successful Police Cadet TV serial in 1984 (later named Police Cadet 84 to distinguish it from subsequent sequels). He played an outgoing young man who decides to become a police officer; Maggie Cheung, who also started her career at the same time, played a shy bookworm, Leung's upstairs neighbour and love interest. Since then they have worked together on The Yang's Saga (1985), Days of Being Wild (1991), Ashes of Time (1994), In the Mood for Love (2000), Hero (2002), and 2046 (2005). Interviewed by Wong Kar Wai, Leung said that he considered Maggie to be his alter ego. "Maggie is a truly formidable partner – one to waltz with. We do not spend a lot of time with each other, as we like to keep some mystery between us. Whenever I see her, I discover something new about her".[4]

During the late 1990s, it was difficult for him to break into Hollywood because he would not take on any roles that degrade his character and image in Hong Kong. To date, he has not done a Hollywood film, but is primed to appear in one after signing on with an American film agent.[8][9]

In addition to Cantonese, English, and Spanish, Leung speaks Mandarin (accented) and some Japanese (as heard in Tokyo Raiders). Lust Caution is the first film where he has a Mandarin-speaking role in which he used his own voice. (His Mandarin dialogue in Hero was dubbed by someone else.)

During the promotion of the film Hero, some politicians and commentators in Hong Kong attacked Leung for expressing the view that the Tiananmen Square demonstration crackdown was necessary to maintain stability. Under constant political pressure and boycott threats, Leung made a single statement that he may have been quoted out of context but refused to retract his statement in the magazine.[10] However, the movie magazine editor maintained that the original statement was not out of context and challenged people to read the complete interview.

The fine art print of "Tony Leung in Beijing" became Singapore's most expensive art piece in 2012. The photograph was taken by Dominic Khoo in (2008).[11]

Leung has dated Carina Lau since the end of 1989. He had known her since The Replica in 1984 as she had been good friends with Margie Tsang, his previous girlfriend. He worked on-screen with Lau in Replica (1984), Duke of Mount Deer (1984), Police Cadet (1984, 1985, 1988), The Yangs' Saga (1985), Days of Being Wild (1991), He ain't heavy, he's my father (1993), Ashes of Time (1994), and 2046 (2005).

In 1990, during the filming of Days of Being Wild, Lau was abducted for several hours. Wong Kar-wai said, "Originally, there were plans for Days of Being Wild I and II, and the sequence featuring Leung was meant to be the opening scene of the second movie. But two things happened, one of which was that Days of Being Wild didn't do well in Hong Kong, so the producers said, "No Part 2." The other reason was Carina Lau's kidnapping.[3]

On 21 July 2008, the couple got married in Bhutan in royal fashion. The wedding created a media frenzy in Hong Kong, with companies spending hundreds of thousands of dollars to pursue the wedding party.[13]